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Tuesday, August 26, 2008

Selling Principles

Joe’s Waterhole Pte. Ltd is a medium size kitchenware stores in Eumundi, Queensland. It was established by Joe Waterhole in 1819 and now his grand son with his wife is the owner and the shareholder of this company. Having a turnover of USD359, 000 a month and a profit margin between 15% - 20%, depending on the products. While the servicing Joe’s Waterhole also does servicing but all are referring to Kitchenware. The products ranging from kitchen basin, dinner tables, pipes, kitchen curtains, knife sets refrigerators and even the stoves. While the services provided are kitchen maintenance, renovation, upgrading and even plumbing for kitchen areas.

Since 2006 the sales has drop tremendously for almost 20% - 35% respectively. Both Joe Jr. and his wife decided to engage a new Sales Manager to handle the 10 staff of which 6 are sales person and 4 is the maintenance person. Julia, a fresh graduate in Sales and Marketing has been engaged and being entrusts to resolve the sales decline of 2006 and 2007 phenomena.

Soon after she had her position, she then started by understanding the sales, operation and the culture of the organizations. Soon she found that the company fails in most of the tender bid or even quotations bid in supply all kitchen wares to restaurants, university hostel nearby and resorts kitchen. It seems that the sales people did not understand the decision making process of the business market.

She had also distributed VOC forms (Voice of Customer) and found out the response that 55% complaints the sales person forgotten who is their customers. To Julia it is only a transactional selling which all stores do. 97.5% the customer are satisfied with the products but it seems that are also buying randomly at other 2 stores which is Joe’s Waterhole competitors.

The lists of customers are not available but randomly Julia is able to capture that there are at least the 50,000 family in this town who are modern farmers, government servant and business people at least drop in at least once in 2 months. She was thinking to resolve this issue too for business improvements.

If you are being appointed as the New Sales & Marketing Manager instead of Julia, what are the main 3 problems Joe’s Waterhole is facing with regards to selling principles? Describe each of them and what is the theory that you have learned with regards to the problems of Joe’s Waterhole? Put up a proposal in resolving these issues.

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